How Will You Do In The Coming Recession?

 A lot of the nation’s leading economists have recently said that it is just a matter of time as to when the next recession will come. They say that all the indicators are there and that as early as this year or next year, it could be 2008 all over again. Are all these predictions credible? In my opinion, it’s better to be prepared than sorry.
I’m not an economist but I do know as a bankruptcy attorney that whenever we are in a recession, bankruptcy filings dramatically increase. More than 10 years after the last financial crisis, the economic recovery has still been slow for a lot of people. They’ve been left behind with little or no savings.
One thing we can learn more from the recent government shutdown is that a lot of people are literally one paycheck away from bankruptcy. Within just a month into the shutdown, we immediately started hearing stories of people who don’t have money to even buy food or pay next month’s rent. Why do a few weeks without pay instantly turn into a financial crisis for these families?
Simple. Because most people live paycheck to paycheck and with zero savings for emergencies, they’ve put themselves in a very vulnerable (and scary) position. And let me tell you that shockingly, 80 percent of the population lives this way. So, when the next recession comes, these people will find themselves terrifyingly unprepared. Sadly, the problem is pervasive. A recent survey revealed that 60 percent of the population has less than $1,000 in savings.
What stops most people from saving money is excessive indebtedness. How can one set aside money every month when they can barely keep their heads above water with all their monthly financial obligations? If this describes your situation, you may want to take a closer look at your finances and see what needs to change before it’s too late.
Ray J. Bulaon is a bankruptcy and debt relief attorney in Valencia who has helped more than 6,000 clients get out of debt. Call his office at 866-477-7772 or 661-775-4880 for additional information.